Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Nathaniel August

Individual investors can catch a glimpse of hedge funds’ equity positions by analyzing their quarterly 13F filings. The batch of 13Fs for the quarterly period that ended December 31 will be fully available on February 16, so investors will be able to take a look at the stocks hedge funds have put their faith in during the fourth quarter. However, one should remember that 13G, 13D, and Form 4 filings can be equally important for those tracking hedge funds’ moves, because they tend to disclose more up-to-date insights about some of these funds’ largest positions. Having said that, the following article will discuss four recent filings submitted by billionaires Carl Icahn, and Andreas Halvorsen, as well as two other hedge fund managers tracked by Insider Monkey.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

In a Schedule 13D filing, Nathaniel August’s Mangrove Partners reported owning 8.18 million shares of Atlantic Power Corp (NYSE:AT), which constitute 6.7% of the company’s outstanding stock. That compares to the ownership stake of 6.19 million shares disclosed through the fund’s 13F for the September quarter. The 13D filing also disclosed that Mangrove felt the shares of the power company were undervalued and represented an attractive investment opportunity at the time of purchase, so let’s try to find out why Mangrove finds Atlantic Power’s shares so attractive at the moment.

Atlantic Power Corp (NYSE:AT) operates a fleet of power generation assets in the United States and Canada, primarily selling electricity to utilities and other large commercial customers under long-term power purchase agreements. PPAs are intended to reduce the company’s exposure to fluctuations in commodity prices, but the shares of Atlantic Power are still down by 34% over the past 12-month period. It is worth mentioning that the company’s PPAs will not begin to expire until December 31, 2017 at the earlier, so Atlantic Power is well-positioned to generate steady revenue in upcoming years. Even more to that, Moody’s Investors Services upgraded the company’s corporate debt rating to B1 from B2 in October 2015, which makes us believe that Atlantic Power is financially healthy as well. However, with the sale of its Wind Projects to one of Sunedison Inc. (NYSE:SUNE)’s yieldcos for $335 million in 2015, the company has less renewable energy projects in its portfolio, while its customer base has become more concentrated. 12 hedge funds from our database had stakes in the company at the end of September, amassing roughly 14% of its shares. Joel Ramin’s 12 West Capital Management holds a position of 7.31 million shares in Atlantic Power Corp (NYSE:AT) as of the end of the third quarter.

Nathaniel August
Nathaniel August
Mangrove Partners

Let’s head to the next two pages of this article, where we discuss three other freshly-submitted filings.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.